ADFA StartSmart First-Time Homebuyer Program

What is ADFA StartSmart First-Time Homebuyer Program?

ADFA StartSmart First-Time Homebuyer Program is a first mortgage for homebuyers in Arkansas, administered by Arkansas Development Finance Authority (ADFA).

• StartSmart is ADFA's tax-exempt mortgage-revenue-bond-funded first mortgage offering below-market interest rates (approximately 1% below market) and lower monthly payments for first-time homebuyers in Arkansas. It can be paired with ADFA's Down Payment Assistance second mortgage. Serves all 75 Arkansas counties.
• 30-year fixed-rate first mortgage at approximately 1% below market rate; can be combined with ADFA Down Payment Assistance.

Do you have to pay it back?

ADFA StartSmart First-Time Homebuyer Program is a first mortgage and is repaid under the terms set by Arkansas Development Finance Authority (ADFA).

• The assistance is recorded in first position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

ADFA StartSmart First-Time Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

ADFA StartSmart First-Time Homebuyer Program sets its income limit as follows: Household income cannot exceed maximum limits that vary by county and household size; see ADFA StartSmart Income Limits PDF.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

ADFA StartSmart First-Time Homebuyer Program caps the purchase price at $500,000.

• Eligible property types include single_family_detached, condominium, townhome, planned_unit_development, modular, duplex, and manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

ADFA StartSmart First-Time Homebuyer Program names veterans and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

ADFA StartSmart First-Time Homebuyer Program serves buyers purchasing anywhere in Arkansas.

• The program targets specific areas: 30 federally targeted counties where the first-time homebuyer requirement is waived.

How do you apply?

Applications for ADFA StartSmart First-Time Homebuyer Program go through Arkansas Development Finance Authority (ADFA), which publishes the current terms and the application steps on its own site.

1. 1

   Contact Arkansas Development Finance Authority (ADFA) to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.